Demonetisation: Ten things to know before heading to a bank or ATM

A string of administrative measures has since been deployed to mitigate public inconveniences resulting from the November 9 ban on Rs 1,000 and 500 banknotes, which accounted for 86% of the currency in circulation in the country, where cash is still used in 70% of the expenses.

Saturday marks the 11th day since the government declared that two high-value banknotes would no longer be legal tender, resulting in a rush of customers outside banks and ATMs that is yet show signs of subsiding.(HT File Photo)

Saturday marked the 11th day since the government declared that two high-value banknotes would no longer be legal tender, resulting in a rush of customers outside banks and ATMs that is yet to show signs of subsiding.

A string of administrative measures has since been deployed to mitigate public inconveniences resulting from the November 9 ban on Rs 1,000 and 500 banknotes, which accounted for 86% of the currency in circulation in the country, where cash is still used in 70% of the expenses.

Here are 10 things you should know before you head to a bank or ATM kiosk:

■ATM cash withdrawal capped at Rs 2,500 per day

Rs 2,500 is the maximum amount you can withdraw from an ATM a day. For this, though, the machine has to be recalibrated to handle new Rs 500 and 2,000 notes. ATMs that have yet to be upgraded will dispense only Rs 2,000 per card. In view of the rush at banks, as most ATM kiosks continue to remain closed, the Supreme Court expressed fear that the situation could worsen and result in riots.

■Rs 2,000 from select petrol pumps

Given the long queues at ATMs, select fuel pumps of state-owned oil companies have started keeping machines that people can use to withdraw up to Rs 2,000 using their debit cards. There are 2,500 such pumps across the country — all of them use SBI’s point-of-sale machines. The number of such outlets is slated to rise to 20,000 by Monday, when card-swipe machines from HDFC, Citibank and ICICI will join the scheme (originally suggested by the All India Petroleum Dealers Association).

■Rs 24,000 a week from savings account

A savings account holder can withdraw up to Rs 24,000 per week from the bank. This ceiling includes cash withdrawn from ATMs.

Those with current accounts can withdraw up to Rs 50,000 in cash a week, provided the account has been in operation for at least three months. This move is primarily to address the routine needs of the business community, particularly small traders.

■Old notes valid till November 24 for key utilities

There are certain expenses you can still meet using scrapped Rs 500 and 1,000 till November 24. These include payments towards bills for water and electricity, fees, charges, hospital bills, taxes and penalties payable to central and state governments (including civic bodies).

You can exchange demonetised Rs 1,000 and 500 notes at banks with valid currency worth Rs 2,000. The remaining amount must be deposited.

■Cash deposit norms

Any amount may be deposited in banks in scrapped currency till December 30, but your PAN card details would be required if the total deposit over the allowed period amounts to over Rs 2.5 lakh.

■Withdrawal limit for marriage expense

It is wedding season in India, making cash essential to meet varied needs related to the family event. On providing proof of an upcoming marriage, the groom, bride or their families can draw cash up to Rs 2.5 lakh in cash from their KYC-compliant bank account.

■Relief to farmers, traders

It is also sowing season in the country, and the government has arranged ways for farmers to withdraw Rs 25,000 in cash per week (that can also be taken from a Kisan credit card). The amount is, nonetheless, subject to the kind of crop planned to be sown. Also, traders registered with the Agricultural Produce Market Committee can withdraw up to Rs 50,000 per week.